Transmeta and Sony Group Reach Agreement on Multi-Year Strategic Alliance

Accelerates LongRun2 Adoption for Cell Derivatives; Builds Technology Collaboration in Other Areas

Santa Clara, CA - March 31, 2005 - Transmeta Corporation (NASDAQ:TMTA), the leader in efficient computing technologies, today announced that it has entered into a strategic alliance with Sony Corporation and Sony Computer Entertainment, Inc. (collectively referred to as "Sony Group"). Transmeta will provide engineering services to the Sony Group to accelerate and expand its adoption of Transmeta's LongRun2 technologies in products such as Cell derivatives, and engage strategic technology collaboration in other engineering areas.

The first aspect of this alliance enables Sony Group to strongly leverage the value of their recent license of Transmeta's LongRun2 technologies. By utilizing Transmeta's experience in advanced low power consumption semiconductor design, Sony Group can accelerate the introduction of LongRun2 and the benefits in their products. In particular, Sony Group expects to utilize Transmeta to help develop, and accelerate adoption of LongRun2 technologies into products such as Cell derivatives as well as other portable applications. This work is expected to encompass engineering on both current and future generation semiconductor process technologies.

Transmeta's LongRun2 technologies address the semiconductor industry's growing problems of excessive chip heat and transistor leakage in leading edge high performance semiconductors.

"We are very excited to be working with Sony Group on next generation technology products," said Dave Ditzel, Chief Technology Officer for Transmeta Corporation. "By working directly with Sony Group at the engineering level to integrate our LongRun2 technologies we will be able to provide the power and heat reduction benefits for Sony Group's advanced semiconductor projects in the shortest time possible."

Another aspect of this strategic alliance is the beginning of collaboration in other engineering areas, leveraging Transmeta's expertise in microprocessor design, software design and system design. This engagement centers on activities with Cell derivatives, and utilizes Transmeta's larger intellectual property foundation to enrich Sony's engineering projects.

"Transmeta's technology in building low-power consumption processors and their talented engineering team are highly respectable," said Ken Kutaragi, President and Group CEO of Sony Computer Entertainment. "We are excited to work with Transmeta as a way to further expand our capabilities in semiconductor chip design, software, power management and systems design for a broad range of products."

As part of the agreement, Transmeta will provide the services of over a hundred Transmeta engineers to work on advanced projects for the Sony Group.

About Transmeta Corporation

Transmeta Corporation develops and licenses innovative computing, microprocessor and semiconductor technologies and related intellectual property. Founded in 1995, Transmeta first became known for designing, developing and selling its highly efficient x86-compatible software-based microprocessors, which deliver a balance of low power consumption, high performance, low cost and small size suited for diverse computing platforms. We also develop advanced power management technologies for controlling leakage and increasing power efficiency in semiconductor and computing devices.

To learn more about Transmeta, visit www.transmeta.com.

Safe Harbor Statement

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date of this release, and we will not necessarily provide updates of our projections or other forward-looking statements. Investors are cautioned that such forward-looking statements are subject to many risks and uncertainties, and may differ materially or adversely from our actual results or future events. Important risk factors that could have material or adverse effects on our results include general economic and political conditions, specific conditions and volatility in the markets that we address, difficulties or delays in implementing our restructuring plan, the potential loss of key technical and business personnel resulting from our restructuring plan, practical challenges in modifying our business model, the adoption and market acceptance of our products and technologies by current and potential customers and licensees, our inability to predict or ensure that third parties will license our technologies or use our technologies to generate royalties, the rescheduling or cancellation of significant customer orders, difficulties in developing or manufacturing products in a timely and cost effective manner, our dependence on third parties for sourcing materials and providing manufacturing services, intense competition and competitive pressures, the ability to enter strategic collaborations or raise financing on satisfactory terms, reaching agreement upon a definitive agreement after signing a non-binding letter of intent, patents and other intellectual property rights, and other risk factors. We urge investors to review our filings with the Securities and Exchange Commission, including our most recent report on Form 10-K, which describes these and other important risk factors that could have an adverse effect on our results. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Transmeta, Efficeon, LongRun2 and Crusoe are trademarks of Transmeta Corporation. All other product or service names mentioned herein are the trademarks of their respective owners.